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Farmers in distress

There is little doubt that the several of the measures being taken by the Central government, whatever is their positive impact on the economy, will hit the farmers, small traders and the even pensioners. So, measures are needed to protect them.

As to farmers, the government is taking certain steps one year after coming to power. They are already late as could be seen from the suicides of farmers in Maharastra, Telangana, Karanataka, Andhra Pradesh and Kerala.

The proposed crop insurance scheme will go a long way in helping the farmers if implemented properly. First of all, wide coverage of the scheme encompassing all sections of the farmers should be ensured. Secondly, compensation should be made within 30 to 45 days in the case of crop loss. This should be mandatory with delay in making the payments attracting penal interest.

However, it should be noted that the insurance scheme would be of help only in the in the case of crop loss/failure while fluctuation in prices of farm produce is a bigger problem faced by the farmers. The government should bring in better instruments to ensure remunerative prices. Indian farmers do not like to be on welfare.

Every crop in the country suffers from sudden fall in prices one time or another. Even rubber is no exception as could be seen from recent developments. Often the fall in prices of rubber are caused by imports and international developments such as fall in prices of petroleum. Fall in prices of rubber wood has compounded the problems as farmers used earnings from clear-felling of plantations to fund replanting.

The move of the Central government to allow 100 per cent foreign direct investment in rubber and coffee plantations could be of disadvantage to small farmers. The funds flow would be accompanied by technology flow also, and small farmers may soon lose competitiveness.